The Telugu film industry is facing difficulties, as major digital platforms like Netflix, Amazon Prime, Disney Hotstar, and Zee5 have reportedly reduced their investments in Telugu content. This has caused significant concern within the industry, with many producers unsure of how to proceed. The reduction in OTT budgets has led to a challenging financial situation, as the digital rights of big-budget movies used to cover a significant portion of the investment. In the past, television satellite rights provided producers with advance payments, but this is no longer the case as OTT platforms are not making such upfront payments.

Actors are now more selective about the films they choose, prioritizing box office success over other factors. They insist that producers release films in theaters first, and they'll only consider deals based on the box office performance. Even big-budget films are facing reduced budgets, which is especially difficult for smaller and medium-budget producers. International brands have also entered the Telugu film industry, spending hundreds of crores to promote their brands among Telugu audiences, but this trend has slowed down in recent years. These digital platforms have attracted Telugu viewers to their platforms by showcasing popular Telugu star movies, and once they reached their expected subscription levels, they reduced deals for Telugu movies, as their viewers have now become addicted to non-Telugu content like English and Korean web series.

A top unnamed director claims that Disney Hotstar and Zee 5 are planning to increase their financial support for Telugu movies. They understand the growing popularity of Telugu films and are willing to acquire more of them. Zee Studios intends to invest more money in the Telugu film industry and back major productions. In the past, Netflix and Amazon Prime had been purchasing big-budget Telugu movies, which helped producers make more films. However, when these streaming giants reduced their content acquisitions, it became difficult for producers to make movies with popular young and middle-aged actors. Recently, Disney Hotstar has purchased a few Telugu films, helping to sustain the industry. The director advises OTT platforms that while major film failures can result in significant losses, their investments in smaller-budget films will lead to more manageable losses. The producer recommends that Tollywood should avoid reducing their budgets, as that would lead to the industry's downfall.